FOREX Portfolio Takes A Hit

There has been some activity in the currency portfolio since yesterday’s update. We exited the Kiwi short before last night’s RBA announcement and shorted more AUDUSD. This proved to be a good move as AUD dropped over 1% after the RBA announced its rate cut.

GBP erased all of the gains from yesterday due to a poor manufacturing PMI number released earlier today. We remain focused on the BREXIT trade which will see GBP strengthen as more evidence shows the UK will stay in the EU.

We continue to think the BOJ will fold to pressure to weaken JPY. It’s strengthening last week and its continuation through today should be enough evidence for the BOJ to act on its promise of obtaining 2% inflation. This can only be done by increasing liquidity. We have added to our short JPY positions by increasing our USDJPY and our EURJPY positions. Below is an updated list of our holdings.

Side Size (USD) Average Cost Current Price Difference Current P/(L)
EURGBP Sell 20,000 0.784015 0.79005 -0.00603 (176.57)
GBPUSD Buy 20,000 1.463405 1.46247 -0.000935 (18.70)
EURUSD Buy 10,000 1.14768 1.1552 0.00752 75.20
EURJPY Buy 30,000 122.695667 122.4754592 -0.2202078 (53.94)
USDJPY Buy 50,000 106.526 106.021 -0.505 (238.16)
AUDUSD Sell 30,000 0.7655 0.753125 0.012375 371.25
Total P / (L) (40.92)

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